QGX Ltd.

QGX Ltd.

May 12, 2005 12:26 ET

QGX Ltd.: High-Grade Gold Intersected in Veins at Golden Hills

WATERDOWN, ONTARIO--(CCNMatthews - May 12, 2005) - QGX Ltd. (TSX:QGX) is pleased to announce that recent drilling at the Central Valley Zone (CVZ) has intersected additional high-grade gold over significant widths. These results provide a better understanding of the geometry of the High-Grade Quartz-Telluride (HGQT) veins on the margins of the massive sulphide bodies and the first confirmation of the CVZ 43-101 resource model that was completed in February.

Highlights include:

- 13.42 g/t gold over 44.5 m in hole CVZ-111, including 34.6 g/t over 10.50 m

- 11.001111.00 g/t gold over 18.5 m in hole CVZ-112, including 27.3 g/t over 5.0 m (see Table 1 below).

David Anderson, CEO of QGX, commented as follows:

"The results from CVZ-111 and CVZ-112 demonstrate that the HGQT vein zones exhibit good grade continuity in a north-south direction, thus improving the potential mineability of this ore type. The intersected thickness and grades are in good agreement with our 43-101 resource model (see February 28th press release) for this portion of the HGQT vein resource, increasing our confidence in that resource model."

Prior drill holes cut many individual HGQT veins at low angles (e.g., veins were subparallel to the core). To constrain the orientation of the individual veins within the overall vein zone, QGX drilled the most recent holes from south-to-north - that is, roughly parallel to the upper and lower contacts of the massive sulphide bodies. QGX utilized oriented-core drilling techniques for key portions of the holes where HGQT zones were intersected. In total 11 holes were drilled. Assays are pending for the remaining nine holes and should be completed by the end of May Samples are being analyzed using metallic-screen fire-assay techniques. This is a more time-consuming assay procedure but is considered more reliable for this style of mineralization.

CVZ-111 intersected 44.5 m at 13.42 g/t gold, including 10.5 m at 34.60 g/t gold, before deviating away from the massive sulfide contact and outside of the mineralized zone. CVZ-112, collared 19 m south of CVZ-111, intersected 16.7 m of footwall massive sulphide (averaging 1.06 g/t Au) before intersecting 18.5 m at 11.0 g/t gold, including 5 m at 27.3 g/t gold, within the HGQT. These holes tested the HGQT vein zone adjacent to holes CVZ-60 and CVZ-93, which were drilled 20 m apart and in a north-to-south direction. CVZ-60 intersected 9.05 m at 27.09 g/t gold and CVZ-93 intersected 6.3 m at 8.95 g/t gold. CVZ-111 and CVZ-112 demonstrate that this six-to-nine m thick vein zone extends for at least 44.5 m in a north-south (down-dip) direction, and exhibits good grade continuity. Vein-orientation data from both holes show that many individual veins within the overall north-dipping HGQT vein zone dip to the SE or SW.

Neither CVZ-111, nor CVZ-112, drilled across the entire south-to-north length of the HGQT vein zone. Therefore, QGX believes that the intercept reported for CVZ-111, containing the larger intercept of the two holes, represents a minimum true length for the south-to-north direction of this one HGQT vein zone. QGX also believes that the minimum true thickness of the zone, as drilled by CVZ-60 and -93, is 6-9 m.

Assays for the most recent drill holes are outlined in Table 1. Gold values for each sample comprising the intervals reported in Table 1 were calculated by averaging the results of two metallic-screen fire assays of 500 grams each.

Table 1. Drill Results for CVZ-111 and CVZ-112, Golden Hills, Mongolia
Interval Length Au
Hole Number From To (m) (g/t) Resource Type
CVZ-111 194.00 238.50 44.50 13.42 HGQT Vein
including 210.00 220.50 10.50 34.60 HGQT Vein
CVZ-112 215.00 233.50 18.50 11.00 HGQT Vein
including 218.00 223.00 5.00 27.30 HGQT Vein

Table 2. Location and Orientation of CVZ-111 and CCZ-112
Drill-Hole Elevation Azimuth Plunge
Number Section (E) Northing (masl) (degrees) (degrees)
CVZ-111 10500 5306 1854 355.0 -64.5
CVZ-112 10500 5287 1853 358.5 -61.0

Metallurgical Samples

Metallurgical samples from both the massive sulphides and the HGQT veins have been shipped from site. The metallurgical test work will be managed by AMEC and will be carried out by Process Research Associates (PRA) Ltd. in Vancouver. On receipt of the results management will begin a pre-feasibility study. This is expected to commence later in 2005.

Patrick B. Redmond, Chief Geologist of QGX Ltd., is the Qualified Person as defined by NI 43-10 who has reviewed and approved the information contained in this release. SGS Mongolia in Ulaanbaatar, Mongolia, prepared the samples. Activation Labs (Actlabs) in Tucson, Arizona, performed all assays shown in Table 1. The Company maintains a QA-QC program designed by AMEC in the preparation, shipping and checking of all samples from the property.

About QGX

QGX is a Canadian-based company that has been exploring for mineral deposits in Mongolia since 1994. The Company holds a large area of exploration licenses throughout Mongolia. The Company's most advanced property is the Golden Hills prospect in western Mongolia. QGX has filed an independent NI 43-101 report outlining a resource containing approximately 3.3 million gold-equivalent ounces at the Central Valley Zone of Golden Hills (measured, indicated and inferred). Barrick Gold Corp. holds a 9.5% equity interest in QGX as part of a strategic relationship between the companies.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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